That comprised a combination of bank facilities and debt
capital market bonds, which currently included bonds
denominated in New Zealand, Australian and US dollars,
renminbi (yuan) and sterling.

It was the second time Fonterra had issued
Chinese-denominated bonds.

The first was in 2011, when it became the first Australasian
company to tap the dim sum market.

Demand for dairy nutrition in China was expected to double in
the next 10 years.

Fonterra president, greater China and India, Kelvin Wickham
said the co-operative had a strong focus on driving growth in
both volume and value as it developed its integrated business
model in China.

Last year, it launched its milk brand Anchor, along with a
new paediatric formula product, specially tailored for the
Chinese market, under the Anmum brand.

China was expected to experience a continued gap between the
demand and supply of raw milk, so its farming business would
continue to build supplies of raw milk to meet local consumer
demand, Mr Wickham said.

It was expanding its farming operations, with the target of
producing up to one billion litres from 30 farms in China by
2020.

Its well-established food-services and ingredients businesses
were expected to continue to grow in the coming years.